Divestiture

Divestiture in the European Union Law

Concept of Divestiture provided by the “Glossary of terms used in EU competition policy” (Antitrust and control of concentrations, published in 2002): Decision by a firm to sell part of its current operations, divisions or subsidiaries as a result of business restructuring in order to concen-trate on certain products or markets. Under EC competition law, divestiture may also be offered by firms as a commitment ( Commitments) to the Commission in order to eliminate competi-tion concerns related to a notified agreement or concentration.

(See: Article 6(2) and 8(2) of the merger regulation, as well as Section III(1) of the Commission's notice on remedies (OJ C 68, 2.3.2001, p. 3).)